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52. If Stan's land is condemned in order to build a subway system for the city, he must be given:
a. the fair market value of the property.
b. equivalent property.
c. the option of keeping the property.
d. his price for the property.
53. Eminent domain would permit condemnation of land for all the following purposes except:
a. constructing a railroad bridge over a river.
b. building senior citizens' center.
c. building a store.
d. building a post office.
54. The power to zone is generally given to:
a. states by the state constitutions.
b. states by adverse possession statutes.
c. local authorities by enabling statutes.
d. local authorities by master plans adopted by the states.
55. Which of the following is NOT essential to a valid deed?
a. Grantor
b. Grantee
c. Delivery
d. Recording
56. Jan owns lots in the Cruz neighborhood, where she was planning to build an 8-story apartment complex. Cruz has
adopted a single-family dwelling ordinance that encompasses Jan's lots. Jan goes to the library and finds she can
attempt to get judicial review of ordinances based on which of the following?
a. The zoning ordinance is invalid.
b. The ordinance bears no reasonable relation to public health, safety, morals, or welfare.
c. The ordinance amounts to confiscation of property.
d. All of these.
57. The power to convert private property to public use is known as:
a. allocation.
b. eminent domain.
c. after-acquired title.
d. enabling.
58. A buyer's remedies for breach of a contract for the sale of land include all but which of the following:
a. rescission and restitution.
b. damages for loss of the bargain.
c. specific performance with a price reduction.
d. All of these remedies are available.
59. A chronological report of recorded transfers and encumbrances to the property can be obtained by a(n):
a. warranty deed.
b. title search.
c. attorney's opinion.
d. assumption of a mortgage.
60. The time for conveyance of a deed is called the:
a. zoning meeting.
b. closing.
c. title search.
d. recordation.
61. A contract agreeing to indemnify the insured against certain specified defects in title to real property is called:
a. title insurance.
b. a warranty deed.
c. guarantee insurance.
d. a real estate guarantee.
62. Under notice-race statutes, a subsequent purchaser of real estate will prevail if he or she:
a. records the deed first.
b. takes without actual knowledge of a prior unrecorded conveyance and records the deed first.
c. takes with actual knowledge of the prior conveyance and records first.
d. secures a guarantee of indemnification against title defects from the seller and records the written document
first.
63. An instrument representing an interest in real property created to secure repayment of the debt is called a:
a. warranty deed.
b. foreclosure.
c. mortgage.
d. default judgment.
64. The doctrine declaring that the mortgagee's interest in the property is limited to the amount of the outstanding
obligation is known as:
a. adverse possession.
b. the title theory.
c. the lien theory.
d. equity of redemption.
65. A real estate conveyance is governed by the:
a. statute of frauds.
b. financial decisions of the lender.
c. terms of the mortgage.
d. law of secured transactions.
66. Which of the following is not true regarding the warranty of habitability?
a. It is an implied warranty.
b. A majority of states hold that a builder-seller impliedly warrants a newly constructed house to be free of latent
defects.
c. In the majority of states, the buyer must inspect the property thoroughly before completing the sale, as any
defect discovered only after the transaction is complete would not be the seller’s responsibility.
d. Many jurisdictions now require all sellers to disclose hidden defects that materially affect the property’s value
and that would remain undetected following a reasonable examination.
67. A buyer of real estate subject to a mortgage who does not undertake any personal liability for payment of the
mortgage debt:
a. takes the property "subject to" the mortgage.
b. "assumes" the mortgage.
c. can only obtain a quitclaim deed.
d. can only obtain a leasehold.
68. An action through which the mortgage holder takes the property from the mortgagor, ends the mortgagor's rights in
the property, and sells the property to satisfy the debt is known as:
a. foreclosure.
b. equity of redemption.
c. adverse possession.
d. an executed deed of trust.
69. A doctrine allowing a mortgagor who has defaulted to regain her property prior to its sale by paying the debt in full
with interest is known as:
a. rehabilitation.
b. the covenant of quiet title.
c. foreclosure.
d. the right of redemption.
70. A transaction involving real estate whereby one party deposits a deed or money with a third party who holds the
deed or funds until the happening of an agreed-upon event is called a(n):
a. adverse possession.
b. escrow.
c. foreclosure.
d. abstract of title.
71. The elements of adverse possession include:
a. open, constructive, and with permission of the true owner.
b. open, visible, under color of title, and with permission of the true owner.
c. secretive, invisible, hostile, and under claim of right.
d. continuous for the statutory period, open, actual, and adverse.
72. Zoning ordinance variances:
a. are usually available for hardships caused by the actions of the property owner seeking the variance.
b. are available if it affirmatively appears that the property as zoned cannot yield a reasonable return on the
owner's investment in the property.
c. are available for hardships caused by the variance that are common to the zoned area.
d. All of these.
73. Marian lives in a "notice-race" state. She buys Blackacre from Robin but fails to record her deed. Robin then sells
Blackacre to John, who also forgets to record. If Marian realizes her mistake and then records the deed, who will
own title to the land?
a. John, since he had no notice.
b. John, since he purchased in good faith.
c. Marian, because she was first to file.
d. Marian, because she bought the property first.
74. Susan bought Green Acre subject to a $500,000 mortgage granted by Joe to First Bank. If Joe leaves for Bolivia and
does not pay the mortgage, which of the following is true?
a. Susan will not have to pay the $500,000.
b. Susan will lose the land to First Bank (up to $500,000 value).
c. Both of these are correct.
d. None of these are correct.
75. Ellen's driveway is actually on Richard's land, but in 20 years nobody has ever said anything to Ellen about it. When
Richard sells his house, a survey shows the problem and the new owner demands that Ellen abandon use of the
driveway. Will she have to move her driveway?
a. Yes, if she does not actually own the land
b. Yes, since it is not in her deed
c. Not if she used it continuously
d. Not if she got permission from Richard
76. Debra buys land from Oscar, relying upon a mortgage release executed and recorded by the mortgagee, Keith.
Keith, however, had previously assigned the mortgage to Andrew who failed to have the assignment recorded. In
this case, Andrew has:
a. no claim against the property in the absence of Debra’s actual knowledge of the assignment by Keith.
b. no claim against the property because a mortgagee has no right to assign the mortgage to another person.
c. a claim against the property because the assignment to him took place before Debra’s purchase of the land.
d. a claim against the property because recording is not necessary to the effectiveness of a mortgage
assignment.
77. Stan has agreed to sell a warehouse to Ed for $150,000. The contract says that Stan will convey to Ed whatever
interest he has in the property, but does not state that he has any interest. Ed is to receive a(n) deed.
a. insurable
b. quitclaim
c. general warranty
d. special warranty
78. In order for a deed to be effective between the purchaser and the seller of real estate, the deed must:
a. be in writing and signed by both parties.
b. include the actual sale price.
c. be recorded pursuant to the state statute.
d. be delivered to the buyer by the seller with the intent to transfer title.
79. Which of the following would be an invalid restrictive covenant in a deed?
a. A requirement that all buildings are of a certain style
b. A requirement that all homes contain a double garage
c. An agreement not to sell to African-Americans
d. An agreement requiring a minimum size for homes
80. Which of the following is INCORRECT regarding zoning?
a. Zoning can be used to regulate private property, but not to “take” it.
b. A variance permits an otherwise impermissible use of the property.
c. A zoning ordinance needs no reasonable relationship to public health, safety, or morals to be upheld.
d. A nonconforming use may be permitted where property was so used prior to adoption of the zoning ordinance.
81. Which of the following may transfer title to land?
a. Deed
b. Will, or by the law of descent upon the death of the owner
c. Open, continuous, and adverse possession by a nonowner for a statutorily prescribed period of years
d. All of these.
82. Marketable title means that the title is free from which of the following?
a. Encumbrances
b. Defects in the chain of title appearing in the land records
c. Events depriving the seller of title
d. All of these.
83. A secured transaction consists of:
a. a debt or obligation to pay money.
b. the creditor's interest in specific property that secures performance of the obligation.
c. Both of these.
d. None of these.
84. The original mortgagor and mortgagee can transfer their interests to assignees whose right and obligations will
depend primarily on which of the following?
a. Agreement of the parties to the assignment
b. Legal rules protecting the interest of one who is party to the mortgage but not to the transfer
c. Both of these.
d. None of these.
85. What should the simplest agreement for the sale of land contain?
a. Names and addresses of the parties
b. Description of the property to be conveyed and the time for conveyance
c. Type of deed to be given, along with the price and manner of payment
d. All of these.
86. Ann sells to Bob property, which has a $50,000 mortgage in favor of First Bank. Bob purchases the property subject
to the mortgage. The value of the property declines and there is a default on the mortgage. When First Bank
forecloses, the property sells for only $30,000.
a. Can First Bank recover the $20,000 balance from Bob? Explain.
b. Can First Bank recover the $20,000 from Ann? Explain.
c. What rights does Bob have during and after the foreclosure?
87.
a. What is the implied warranty of habitability? Explain.
Alice buys a home, in which she plans to live with her family. After she moves in, everyone in
b. the family becomes very ill. Eventually, they trace the source of the illness to chemicals in the
cabinets and walls of the home. What can Alice do? Explain.
88. Discuss the types of deeds that can be used to transfer title.
89.
a. What public restrictions can be placed upon the use of land? Explain.
b. What private restrictions can be placed upon the use of land? Explain.
90. Explain the concept of marketable title.
